Synthomer PLC Acquisition of OMNOVA receives EC clearance (9271Z)

TIDMSYNT

RNS Number : 9271Z

Synthomer PLC

15 January 2020

15 January 2020

Synthomer receives European Commission clearance for OMNOVA acquisition

Synthomer plc ("Synthomer" or the "Company") today received conditional clearance from the European Commission regarding its proposed acquisition of OMNOVA Solutions Inc ("OMNOVA").

Following its Phase 1 investigation, the European Commission concluded that the transaction, as modified by the commitments offered by Synthomer, does not raise any competition concerns. The commitments require divestment of Synthomer's small VP Latex business in Germany. The VP Latex business represented less than 0.5% of Synthomer's 2018 sales volume. Whilst financially immaterial, the sale process must be finalised prior to the closing of Synthomer's acquisition of OMNOVA. This represents a structural remedy offered by Synthomer to address any concerns regarding the overlap between the two companies' VP Latex operations.

Synthomer has already received a number of expressions of interest for this business and will now proceed with the sale process, with completion of the acquisition of OMNOVA expected late Q1 2020. The transaction also remains subject to regulatory approval from the Turkish authorities, which is expected to be received early in February.

Calum MacLean, Chief Executive of Synthomer, commented:

"We are pleased to have received European Commission clearance for the acquisition of OMNOVA but note the structural remedy required to divest our small VP Latex business in Germany. The acquisition of OMNOVA is strategically and financially compelling. It will materially expand our international business into North America, and grow our presence in Europe and Asia, as well as provide an attractive financial profile with significant expected synergy benefits. We are now working on the divestment as quickly as possible, which will enable us to conclude the OMNOVA acquisition and focus on taking the combined business to the next level."

- Ends -

Enquiries:

 
 Calum MacLean, Chief Executive Officer      Tel: + 44 1279 436211 
  Stephen Bennett, Chief Financial Officer 
  Tim Hughes, President - Corporate 
  Development 
 Charles Armitstead, Teneo                   Tel: + 44 7703 330 269 
  Matthew Denham, Teneo                       Tel: + 44 7825 735 596 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

ACQMZGMMDKNGGZM

(END) Dow Jones Newswires

January 15, 2020 09:21 ET (14:21 GMT)